Requires the appropriation of certain tax expenditures beginning in Fiscal Year 2017-2018 (OR SEE FISC NOTE See Note)
The implications of HB 1067 on state tax law are significant, as it establishes that no income tax credit or rebate may exceed the amount appropriated in the General Appropriation Bill each fiscal year. This change means state agencies responsible for administering these credits will need to develop rules for distributing them based on available funding. A capped and regulated system for tax expenditures aims to prevent the overspending that can occur without clearly defined limits, thereby promoting fiscal discipline within state budgeting.
House Bill 1067 introduces key changes to the management of income tax credits and rebates in Louisiana by mandating that the executive budget and the General Appropriation Bill must include appropriations for each income tax expenditure program. This requirement aims to bring greater accountability and transparency to how tax credits and rebates are allocated by ensuring that all expenditures are appropriated beforehand. The bill is projected to take effect in the fiscal year 2017-2018, creating a structured approach to tax expenditure evaluations and allocations.
Overall, the sentiment surrounding HB 1067 appears to be largely supportive among fiscal conservatives, who view it as a necessary step towards responsible budgeting and increased oversight of tax expenditures. By enforcing appropriations, the bill is seen as a move to prevent arbitrary fiscal decisions that could harm the state’s financial health. However, there may be some concerns raised by advocates for tax relief programs, who might see this legislation as a potential hindrance to developing new tax benefits designed to foster economic growth.
Some notable points of contention relate primarily to the potential administrative burden this bill may impose on state agencies tasked with implementing the new rules. Opponents may argue that while the intention is to create transparency, the practicalities of adhering to strict budgetary controls could limit the state's ability to support businesses and individuals in a timely manner during economic fluctuations. Moreover, the stipulation of periodic evaluations every five years for incentive expenditures raises questions about the flexibility required to adapt to changing economic conditions.